Section 142A of NIA : Section 142A: Validation For Transfer Of Pending Cases

Explanation using Example

Imagine a business owner, Mr. Sharma, issues a cheque to his supplier, Mr. Gupta, which bounces due to insufficient funds. Mr. Gupta files a complaint in Court A, which has jurisdiction as per the amended Section 142(2) of the Negotiable Instruments Act. While this case is pending, Mr. Sharma issues another cheque to Mr. Gupta, which also bounces.

Under Section 142A(2), Mr. Gupta should file this second complaint against Mr. Sharma in the same Court A, even if the second cheque was presented in a different area. This helps in consolidating cases against the same drawer for efficiency and consistency in legal proceedings.